Determine the safety stock level for production planning

Reference no: EM131743551

The Zork Company carries an inventory item that has a normally distributed demand during the reorder period. The mean demand is 350 units and the standard deviation is 10. Marketing determines that a policy resulting in stockouts occurring only 5% of the time is acceptable.

(a) Marketing probably knows the stockout costs (T/F)

(b) Determine the safety stock level for production planning

Reference no: EM131743551

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